An owner or operator may satisfy the requirements of
financial assurance for closure, post closure, or corrective action by
obtaining a local government guarantee provided by a local government. The
local government guarantee must meet the requirements of this section, in
addition to the requirements in Subchapters A and B of this chapter (relating
to General Financial Assurance Requirements and Financial Assurance
Requirements for Closure, Post Closure, and Corrective Action). The local
government guarantor must meet the requirements of the local government
financial test in §
37.271 of this title (relating to
Local Government Financial Test) and must comply with the following terms of
the local government guarantee.
(1) If
the owner or operator fails to perform closure, post closure, or corrective
action of a facility covered by the guarantee, the guarantor will:
(A) perform, or pay a third party to perform,
closure, post closure, or corrective action as required; or
(B) establish a fully funded trust fund as
specified in §
37.201 of this title (relating to
Trust Fund) in the name of the owner or operator.
(2) The guarantee will remain in force unless
the guarantor sends notice of cancellation by certified mail to the owner or
operator and to the executive director. Cancellation may not occur, however,
during the 120 days beginning on the date of the receipt of the notice of
cancellation by both the owner or operator and the executive director, as
evidenced by the return receipts.
(3) If a guarantee is canceled, the owner or
operator must, within 90 days following receipt of the cancellation notice by
the owner or operator and the executive director, obtain alternate financial
assurance and submit evidence of that alternate financial assurance to the
executive director. If the owner or operator fails to provide alternate
financial assurance within the 90-day period, the guarantor must provide that
alternate assurance within 120 days following the guarantor's notice of
cancellation.
(4) The owner or
operator must submit to the executive director an originally signed local
government guarantee worded as specified in §
37.381 of this title (relating to
Local Government Guarantee) along with the items required in §
37.271(3) of
this title. The items must be updated annually in accordance with the
requirements of the local government financial test.
(5) The owner or operator is no longer
required to comply with the requirements of this section when the conditions as
specified in §
37.61 of this title (relating to
Termination of Mechanisms) are met.
(6) If a local government guarantor no longer
meets the requirements of §
37.271 of this title, the owner or
operator must, within 90 days, obtain alternate financial assurance, and submit
such evidence of the alternate financial assurance to the executive director.
If the owner or operator fails to obtain alternate financial assurance within
that 90-day period, the guarantor must provide that alternate financial
assurance within the next 30 days.
